Oriental Carbon and Chemicals (OCCL) Q4 13/14 earnings summary

Executive summary

• FY14 net sales rose 16% YoY to Rs. 26,169.57 lakh; PBT increased to Rs. 5,015.50 lakh and PAT to Rs. 4,043.91 lakh.

• Insoluble Sulphur sales grew 13% to 19,224 MT, while Sulphuric Acid sales fell 17% after a two-month maintenance and modernization shutdown.

• Consolidated PAT was Rs. 4,048.79 lakh; reported EPS was Rs. 39.32, including a net exceptional gain of Rs. 269.91 lakh.

Financial highlights

• Standalone net revenue Rs. 26,169.57 lakh vs Rs. 22,544.07 lakh YoY; total revenue Rs. 26,518.57 lakh vs Rs. 23,032.00 lakh.

• Standalone profit before interest, depreciation and tax Rs. 7,164.05 lakh vs Rs. 6,242.57 lakh; PBT Rs. 5,015.50 lakh vs Rs. 4,003.51 lakh.

• Standalone PAT Rs. 4,043.91 lakh vs Rs. 2,738.45 lakh; basic and diluted EPS Rs. 39.28 vs Rs. 26.60.

• Consolidated net revenue Rs. 33,081.96 lakh vs Rs. 28,737.26 lakh; PAT Rs. 4,048.79 lakh vs Rs. 2,763.06 lakh.

• Operating cash flow was Rs. 5,153.29 lakh; net investing cash outflow Rs. 2,324.09 lakh and financing cash outflow Rs. 3,169.47 lakh.

Outlook and guidance

• With approvals for full plant capacities, Insoluble Sulphur sales were expected to rise toward optimum capacity; further capacity expansion at Mundra was under consideration.

• Strategy targeted shifting all Insoluble Sulphur production to high-stability and high-dispersion grades; R&D capacity was being strengthened to support quality and new grades.

• Insoluble Sulphur demand outlook was supported by expected double-digit Indian market growth and gradual recovery in global tyre markets.

• Sulphuric Acid and Oleum demand outlook remained subdued; the unit was considered viable through surplus steam supplied to Insoluble Sulphur operations.